JAKARTA — The trade ministry (Kemendag) said that the European Union (EU) had stated its commitment to recognize Indonesian palm oil as sustainable commodity within the cooperative framework of Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Kemendag’s International Trade Negotiation Director General Djatmiko Bris Witjaksono said that the EU’s recognition will become an important strategic step for Indonesian palm oil and derivative products to enter the global market, especially Europe.
“Palm oil in EU has been used extensively for production of various products. EU has agreed to recognize Indonesian palm oil as sustainable raw material for energy, foods, and other products. This is an important recognition from the perspective of economy and politics,” Djatmiko was quoted by Antara as saying in Jakarta on Monday (04/08/2025).
Djatmiko pointed out that under the agreement of IEU-CEPA, for the first time in the history of bilateral trade cooperation there is a special protocol that explicitly stipulates palm oil. It is unprecedented under IEU/CEPA agreement with other countries.
“This is the first time that palm oil is exclusively included in CEPA protocol. This has proven that Indonesia’s bargaining position has been taken into account,” he said.
RI’s palm exports potential to rise
With the recognition, Indonesia has big potential to expand market access for palm oil and derivative products to global market, especially the European market.
Kemendag is optimistic that the agreement will become a catalyst to increase Indonesia’s exports of palm oil and strengthen Indonesian image as responsible and ecofriendly producer of palm oil.
“Looking forward, we want this recognition is really shown in all trade activities. Indonesia will stay committed to ensuring that our production of palm oil is always based on the principles of sustainability,” said Djatmiko.
Indonesia is entering a new strategic phase to strengthen economic relations with European Union through the IEU-CEPA.
Economic relations between Indonesia and EU has been continually showing a positive trend with trading value reaching US$30.1 billion in 2024. Trade balance between Indonesia and EU showed surplus for Indonesia, with a significant increase from US$2.5 billion in 2023 to US$4.5 billion in 2024.
Indonesia’s export products to EU are dominated by palm oil and derivative products, copper ores, fatty acids (oleochemical), footwear products, coconut cake, steel, cocoa butter and copra, and rubber-based products and machinery. (*)
